Yahoo Finance Why Hollysys Automation Technologies Ltd.'s Shares Plunged 32% Today
What happened
Shares of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) fell as much as 31.5% in trading Wednesday, after the company reported fiscal fourth-quarter 2018 results. By the time the market closed, some of those gains had been clawed back but were still down 11.1% for the day.
So what
Revenue for the quarter was up 6.7% to $147.2 million, and net income attributable to shareholders rose 28% to $27.7 million, or $0.45 per share. Industrial automation was the highlight, with revenue up 46.2% to $64.0 million.
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Adjusted earnings per share were $0.46 after pulling out one-time items, compared with analysts' expectations of $0.49. That's where investors were disappointed, and it's what sent shares lower.
Now what
An earnings miss can often cause a quick reaction from traders, and that's what we saw this morning. What investors should remember is that revenue and earnings are still rising rapidly, and that's a positive for investors. I wouldn't be too concerned with a small earnings miss given the growth last quarter, but if we see continued misses the next few quarters, it might be more concerning in the long term.
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Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
